Disney's Q2 2024 Earnings Report: Surpassing Estimates With Adjusted EPS Of $1.21, Sets 25% Growth Target For Full-Year EPS

– Earnings Beat: Walt Disney (DIS) exceeded earnings expectations in Q2’24 with an adjusted EPS of $1.21, surpassing the estimated $1.12. This marks an improvement from $0.93 year-over-year.

– Revenue Performance: Despite revenue slightly missing estimates at $22.08 billion (compared to an expected $22.1 billion), there was still a modest increase of 1.2% year-over-year.

– Disney+ Subscribers: While Disney+ subscriber numbers fell short of estimates at 153.6 million (compared to an estimated 155.66 million), there was still significant growth from the previous year.

– Segment Revenue Breakdown:
– Entertainment segment revenue was below expectations at $9.80 billion (estimated $10.31 billion).
– Direct-to-Consumer revenue met expectations at $5.64 billion.
– Sports segment revenue also fell short at $4.31 billion (estimated $4.33 billion).
– Experiences segment revenue exceeded expectations at $8.39 billion (estimated $8.18 billion).

– Segment Operating Income:
– Total segment operating income surpassed estimates at $3.85 billion, marking a 17% increase year-over-year.
– However, specific segments experienced mixed results:
    – Entertainment segment operating income was below expectations at $781 million.
    – Direct-to-Consumer segment operating income outperformed, recording $47 million in profit against an estimated loss of $113.9 million.
    – Sports and Experiences segments both exceeded expectations, with operating incomes of $778 million and $2.29 billion, respectively.

– Subscriber Numbers:
– Apart from Disney+, Hulu also saw growth, surpassing estimates with 50.2 million subscribers (compared to an estimated 49.78 million).

– Annual Guidance and Strategic Updates:
– Adjusted EPS growth target for the fiscal year was raised to 25%, reflecting strong performance in theme parks and streaming improvements.
– Streaming segment, particularly Disney+, achieved early profitability.
– Significant investment of $60 billion over 10 years planned for theme park development.
– Introduction of a stand-alone ESPN streaming app as part of broader digital transformation initiatives.

– Q3 Expectations:
– Anticipating softer results in the Entertainment Direct-to-Consumer segment.

– CEO Comments:
– CEO Bob Iger emphasized the company’s strong performance, signaling a new era for Disney and solidifying its position as a global content creator.